Archive for Grow your Business

The latest buzz word in retail is “Clienteling“. This is where stores are getting their sales associates to proactively communicate with previous customers to inform them of news. From a customer’s perspective, this means that you will soon be getting “cold calls” from MANY stores in the very near future !! I’m sure that some stores will do clienteling correctly, but most stores will do client telling.

Here is my definition of the two terms:

Clienteling: The act of contacting a customer for the purpose of mutual benefit. (two way)

Client Telling: The act of contacting customers to TELL them about irrelevant and trivial info. (one way)

So how should REAL retail clienteling be done correctly ?

1) An honest introduction to the concept – Sales associates need to be honest and inform the customer that their role is being expanded so that they can contact customers directly (if the customer agrees).

2)An introduction to the sales associate - The sales associate needs to communicate exactly who they are and why they are worthy of being a “point of contact”. A picture, a short career bio, and some insight into the sales associate’s expertise and personality will make a huge difference when building a relationship.

3) A written statement of benefits – Give the customer an itemized list of the benefits that they would get by participating. If they are NOT convinced of these benefits in the early stages of communications, they will always view these contacts as annoying.

4) A formal opt-in process – The customer should fill in a form with their preferred method of contact (email, text, phone), and their personal interests (sales, new product introductions, events, etc), and any other requests regarding the associate-customer relationship.

In conclusion, I recommend that EVERY sales associate needs to have their own personal flyer that contains the four elements above. This is how one starts a professional two-way relationship.

OK… bear with me here… this might get a bit technical, but I think I can explain this in a way so everyone can understand what GRAVITY and MOBILE PHONES have to do with each other !

When a store owner is looking to open a retail store in a particular geographic region, they perform an analysis on the surrounding shopping options to determine how many shoppers will potentially visit the proposed location. They use a formula called the “GRAVITY MODEL” ** which calculates the size of the retail area around a specific location based on a comparison of shopping alternatives, driving distance, and population size and demographics. This analysis identifies a “ring” around any given location where potential shoppers reach their “breaking point” (BP) and make a decision to go to store B instead of store A !

For this example, lets assume that one is evaluating a retail location in a densely populated city with evenly distributed customer demographics. In this case, the main factors that get plugged into the “Gravity Model” equation will be:

- Competitors Strength – A popular brand competitor or a larger grouping of stores exert more “pull” and gets consumers to visit from a greater distance.

- Distance to walk / drive – If everything was equal, a consumer will tend to visit the store that is closest.

Well… one thing that is NOT mentioned in the existing gravity equation but should be are MOBILE SALES, MARKETING, and SUPPORT APPS. These APPs are able to put influential store services in the palm of your hand. This is a strong factor when comparing the attractiveness of “store A” vs “store B”. Consumers will shop at a store that is further away if it offers superior OUT-OF-HOME services such as better product information, greater convenience, relevant discounts, personalized solutions, and reduced time spent on non-essential tasks.

In my example city (densely populated), it is easy to imagine that adding mobile services might make your “circle of potential customers” grow from 1/2 MILE to 1 MILE. Calculating the increased area of these circles results in a 400% increase in potential customers ! That is an extremely powerful opportunity for ANY business to increase their revenue. So… I rest my case… Mobile phones really do influence gravity (and have a great ROI ).

The GeoHelp web site is where customers can safely follow local brick & mortar businesses. Unlike ALL traditional social / advertising platforms, GeoHelp lets you control your communications, and we do not share your private information.

1) RELEVANT NEWS: What if you could get information about a new product delivery, or an upcoming sale, or an event discount ? Or become familiar with the REAL PEOPLE behind the brands that you enjoy.

2) QUESTIONS & ANSWERS: The GeoHelp app lets you get answers to your questions using your mobile phone. Businesses can answer questions such as “Do you carry Gucci sunglasses?” or “Are Goodyear tires better than Firestone?”. These real-time questions (and more) from ALL of their customers are visible for you to read. So a type of business specific “chat session” gives you much more information about that business.

For example: When you are hungry, you can look at the business’s GeoHelp Community as see questions and answers from many customers. To ask your own question, just write a text message (or use our voice entry).

To follow a favorite business, just use the Business FOLLOW checkbox !

The GeoHelp by 2du® platform lets you choose EXACTLY what companies you are interested in communicating with (or receiving info and specials from). The directory is international and can be sorted by name, distance, city, and more.

If you are a retailer considering a move into mobile marketing, or you’re a marketer trying to nudge that retailer, you may be battling a perception that MM is the equivalent of that obnoxious telemarketing call that happens precisely when your family sits down to dinner. Won’t people get tired of your message program…like, quickly?

The answer is yes…if you’re obnoxious about it. But, what does that mean, exactly? How much is too much? Are there any standards to go by? Actually, there are, as provided by the Mobile Marketing Association.

The six “C”s of an Ethical Mobile Marketing Program

These correct way to do mobile marketing is to offer customers:

Choice - Your consumer has a right to privacy, and must first “opt-in” to a mobile marketing program.

Control - Consumers should have control of when and how they receive your message, and be able to easily terminate or “opt-out” when they choose.

Customization - You should tailor your message to reflect the data and preferences supplied by your consumer. This results in more useful messages and less spam!

In the end, these six “C”s boil down to one thing… treating your customers with respect. It takes talent to strike the balance between a prominent, effective message…and obnoxiousness. At 2du, there were a LOT of design decisions that went into trying to protect the concept of the six “C”s… we are trying our best.

How does one turn good ideas into successful corporations ? A large number of entrepreneurs start this path every year and become a significant percentage of the world economy. The existence of entrepreneurs such as Bill Gates, Steve Jobs, and Richard Branson are known, but do people really understand what they accomplished ? Does the “man on the street” really realize what it takes to go from working 20 hour days in a garage (surrounded by old pizza boxes) to being the richest man in the world ? Their riches were not due to ancestry, they were not due to conquest, they were not because they owned natural resources. This great wealth was due to the creation and execution of a GOOD IDEA !

Note the sentence above… creation and EXECUTION. Executing on an idea requires that you first create a vision of the future. What is your goal ? How big will your company be ? What markets will you be in ? What problem categories will you be solving ? What environmental factors will be affecting your business in the future? This vision should not be a straight-jacket though… this is based on information that you have right now… as you get more information, your vision can change… but at ALL TIMES, you must know what the end game is or you don’t know what steps are needed to get there.

With my 2du company, I have a pretty aggressive “vision”. The reason that I think this is attainable is primarily due to my opinions concerning the future of new media technologies. I think we are in the first phase of a “perfect storm”where a combination of events are going to dramatically change the way that businesses communicate and create value for their customers. Radical changes are happening all around us… sales, marketing, and support techniques, the ways that we pay for goods and services, the visibility and power of individual opinion, and more… all of these are being enabled by NEW MEDIA technologies. I think this is a business tsunamithat will effect ALL business (world-wide) ! This is NOT a niche, this is ALL business (world-wide). Think about it… I can’t even say what that dollar value is or people will just roll their eyes ! I really do believe that new media technologies will be purchased and integrated into EVERY business in the coming years. The NEW MEDIA opportunity is one of those situations like the early days of electricity… very few people have it and EVERYONE needs to be connected !

As long as we execute our WIN-WIN ideas… well…. I better get back to work !!

I was reading a study by “Marketing Sherpa“ which gives a lot of details about how Businesses are using new media technologies such as blogs, social networks, multimedia, and more. Since GeoHelp uses a Real-time Business/Customer microblog, it jumped out at me that they found that microblogging was judged as “most effective for the least effort” new media technology for businesses… very interesting !

Remember the days when retailers knew their customer’s names and preferences when they walked in the door ? Well… neither do I !! I think I’ve seen this on an old “GUNSMOKE” rerun !

For many centuries now, retail marketers have been directing their messaging towards broad categories of customers (mass marketing). This is now changing due to the application of technology into the retail space. Recording of purchase history and identifying buyer behavior is common now-a-days, but REAL change is just starting to happen… mass marketing is changing to personal marketing.

MASS MARKETING changing to PERSONAL MARKETING

Put yourself in the shoes of a business owner… you don’t want to take advantage of anyone, you just want to make a living… a completely normal urge to provide value to customers AND feed your family (ok build your business) ! How would you do that with the least amount of pain ???? In short, the least expensive and most effective way to build a business is to influencecustomers at the EXACT time that they are making a purchase decision. So how do you do this ?

Personal marketing means offering customers RELEVANT information and RELEVANT offers. Relevancy requires knowledge. You need to know about your customers’ interests and preferences… this is worth money because it lets you stop doing “shotgun” advertising. You can tailor your offers to match the needs of individuals ! This is the concept of the GeoHelp Platform. 2du creates a WIN-WIN system so businesses get relevant information and customers save money.

The chart used here is from: NextGen of Merchandising and Marketing – Customer Insights at the Point of Decision – An ebook written by DemandTec and downloadable from http://www.demandtec.com/

I don’t think of myself as terribly materialistic, but I enjoy being where the ACTION is and would also like to make enough money so I can do what I want for the rest of my life. I think I found a subject that might fit the bill…

This graph is a little out-dated, but I’m sure the shape is still similar !

So where is this $$ coming from?
• Text ads to opt-in customers (VIP Clubs)
• Display ads on mobile web sites (scaled down to work on your phone)
• Display ads on mobile search results
• Display ads in mobile games or in TV-like guides
• Video ads that come with streaming video, or mobile TV

I know… that sounds like a LOT of ads on my little phone display. 2du is doing something to address that issue… we have created GeoHelp (web + SMS + email messaging) that lets every member manage their own messaging. You get your own account where you select exactly what local businesses can send information and discounts to you. You decide who can send messages, how many, and how often ! We are just getting started, so “pardon our dust”… I hope you agree that this is the most powerful messaging system you have EVER SEEN ! Click here to see GeoHelp

Phase 1: Identify your Customers

Promotions, interactive games and loyalty card programs all have the goal of identifying both new and existing customers. You offer rewards in exchange for customers telling you who they are. Once you know exactly who your customers are, you can start a dialogue with them… for example LISTENING to their opinions and preferences, and offering products and services which meet their needs ! These identification efforts should be running AT ALL TIMES or you are missing an opportunity to grow your business.

Phase 2: Exchange Value for Info

Now that you have a raw customer list, you can start to exchange value for more information about them. It isn’t really that important to know the basic details (name, address, phone, etc.)… it is needed for the process to work (contacting them), but basic details are NOT the goal !!!The goal is to know what people like and what motivates them to visit your business and purchase your goods and/or services !! What do they buy ? Why do they buy it from your business ? What can your business do differently so that person wants to buy more ?

Phase 3: Optimizing the WIN-WIN

Now that the business has more detailed information about individual customer preferences. The business can now create and monitor targeted VALUE OFFERS to individual customers and see if they perceive a meaningful benefit ! Since customer “perception” is an ever changing variable, the value offerings need to be changing to take “real-time information” into account (such as new product deliveries, previous offer reactions, even current weather conditions !!). So start experimenting and see what REAL-TIME value-added mechanisms cause customers to visit more, spend more time per-visit, spend more money per-visit, and tell more people about your brand !

NEW MEDIA and database technologies enable this process. The GeoHelp platform is designed to combine these technologies to make REAL-TIME experimentation easier so businesses can create a non-intrusive WIN-WIN for the community. We value your opinion !

Retail Info Systems News (www.risnews.com) surveyed 48 major retailers about their “mobile commerce” status and plans. Examples of companies represented were; Sears, 1-800-Flowers, Ralph Lauren, Target, Amazon, etc. 32.7% of these companies are currently executing a mobile marketing (“m-commerce”) strategy either right now or will have one implemented soon.

Q -What business goal is driving this adoption of Mobile Marketing ?A - The top answers from these companies were…
#1 = Improve Customer Loyalty, Retention and Repeat Visits
#2 = Create New Buying Opportunities for Existing Customers
#3 = Create a New Channel for Marketing, Advertising and Brand Awareness